Granny tax

[AtW]

"Family homes with "granny annexes" designed to house elderly relatives may now be unaffordable for middle-class families as tax rules introduced yesterday mean they are now subject to an extra 3pc stamp duty charge.

The Telegraph can reveal that as many as 33,000 homeowners with self-contained "granny flats" on their land will be classed as having a "second property" under a new Government tax regime.

The tax was intended to force buy-to-let investors and second home buyers to pay an extra 3pc on property purchases in order to help first-time buyers by cooling the property market.

Estate agents have warned that when owners of such homes come to sell they face losing up to 3pc of the total sale price, equivalent to £9,000 on a £300,000 property. This is because buyers will pass on some or all of the cost of the extra tax they now owe.

The controversial tax will financially disadvantage thousands of families who built granny annexes after the Department for Communities and Local Government encouraged them to do so by abolishing council tax on them.

The policy, which was introduced in 2014, has since sparked a boom in annex building, with the number increasing by more than a third since then, official figures show.

Now tax experts say the new tax on granny annexes will encourage families to sell it separately from their main home - saving them thousands of pounds by avoiding the extra 3pc tax. "

More DOOM from the source: The end of the 'granny annexe'? Thousands subject to extra tax under new stamp duty regime

Tough on BTL, tough on the causes of BTL...

[Troll]

"Family homes with "granny annexes" designed to house elderly relatives may now be unaffordable for middle-class families as tax rules introduced yesterday mean they are now subject to an extra 3pc stamp duty charge.

The Telegraph can reveal that as many as 33,000 homeowners with self-contained "granny flats" on their land will be classed as having a "second property" under a new Government tax regime.

The tax was intended to force buy-to-let investors and second home buyers to pay an extra 3pc on property purchases in order to help first-time buyers by cooling the property market.

Estate agents have warned that when owners of such homes come to sell they face losing up to 3pc of the total sale price, equivalent to £9,000 on a £300,000 property. This is because buyers will pass on some or all of the cost of the extra tax they now owe.

The controversial tax will financially disadvantage thousands of families who built granny annexes after the Department for Communities and Local Government encouraged them to do so by abolishing council tax on them.

The policy, which was introduced in 2014, has since sparked a boom in annex building, with the number increasing by more than a third since then, official figures show.

Now tax experts say the new tax on granny annexes will encourage families to sell it separately from their main home - saving them thousands of pounds by avoiding the extra 3pc tax. "

More DOOM from the source: The end of the 'granny annexe'? Thousands subject to extra tax under new stamp duty regime

Tough on BTL, tough on the causes of BTL...

Switzerland .... sorted

HTH

[Lockhouse]

We've got a self contained annex. It doesn't have a separate address though and has adjoining internal doors. My daughter is currently living in it. Prior to that it was home to the disabled father-in-law until he had to go into a care home.

Not sure if this is more FUD from HMRC but it's 5 O'clock and it's the last thing you want running through your head when you can't sleep.

[BrilloPad]

I am waiting for a sofa tax.

[DimPrawn]

Not a problem for Dodgy Agent.


He sold his granny years ago for a good price.

[OwlHoot]

"Family homes with "granny annexes" designed to house elderly relatives may now be unaffordable for middle-class families as tax rules introduced yesterday mean they are now subject to an extra 3pc stamp duty charge.

The Telegraph can reveal that as many as 33,000 homeowners with self-contained "granny flats" on their land will be classed as having a "second property" under a new Government tax regime.

The tax was intended to force buy-to-let investors and second home buyers to pay an extra 3pc on property purchases in order to help first-time buyers by cooling the property market.

Estate agents have warned that when owners of such homes come to sell they face losing up to 3pc of the total sale price, equivalent to £9,000 on a £300,000 property. This is because buyers will pass on some or all of the cost of the extra tax they now owe.

The controversial tax will financially disadvantage thousands of families who built granny annexes after the Department for Communities and Local Government encouraged them to do so by abolishing council tax on them.

The policy, which was introduced in 2014, has since sparked a boom in annex building, with the number increasing by more than a third since then, official figures show.

Now tax experts say the new tax on granny annexes will encourage families to sell it separately from their main home - saving them thousands of pounds by avoiding the extra 3pc tax. "

More DOOM from the source: The end of the 'granny annexe'? Thousands subject to extra tax under new stamp duty regime

Tough on BTL, tough on the causes of BTL...

Luckily my granny annexe adjoins the main house. So I can just knock a doorway through the wall and call the annexe a "wing".

[BigRed]

Luckily my granny annexe adjoins the main house. So I can just knock a doorway through the wall and call the annexe a "wing".

Good luck with that. I tried to get my house and granny flat classed as a single property for Council Tax after creating an internal doorway and was told I would have to remove the kitchen, not just the appliances but the sink and power supply for the electric cooker as well. I would also have to remove the external entrance and get the separate gas and electric supplies taken out.

I didn't bother in pursuing it as the council tax band would have been re-assessed anyway so it wasn't likely to make much difference.

[SueEllen]

Good luck with that. I tried to get my house and granny flat classed as a single property for Council Tax after creating an internal doorway and was told I would have to remove the kitchen, not just the appliances but the sink and power supply for the electric cooker as well. I would also have to remove the external entrance and get the separate gas and electric supplies taken out.

I didn't bother in pursuing it as the council tax band would have been re-assessed anyway so it wasn't likely to make much difference.

Couldn't you change religion?

There are some religions where having 2 kitchens is desired to allow the separate cooking of different foods.

Though you still would have to remove the utility meters.

[AtW]

I am waiting for a sofa tax.

I won't be affected...

[AtW]

There are some religions where having 2 kitchens is desired to allow the separate cooking of different foods.

This one? One food is cooked for the TV crews and another for themselves...